OIL AND GAS - JAKARTA. The Energy and Mineral Resources Ministry has approved United Kingdom-based oil giant BP’s proposal to export 84 cargo loads of liquefied natural gas (LNG) to Singapore from its Tangguh LNG project in West Papua starting next year.
The ministry’s oil and gas director general, Djoko Siswanto, told the press on Tuesday that Energy and Mineral Resources Minister Ignasius Jonan had approved the proposal last Friday. “[The LNG deal with Singapore] was the result of BP’s auction. […] The gas price is good,” he said.
The LNG supply comes from Train 3, one of BP’s Tangguh facilities. Tangguh LNG is a unitized development of six gas fields located in the Wiriagar, Berau and Muturi Production Sharing Contracts (PSCs) in Bintuni Bay, West Papua.
Djoko added that four cargo loads would be exported next year and 16 annually the following year until 2025.
“The [LNG] price is agreed at 12.33 percent from the Japan Crude Cocktail [JCC],” he said referring to the average crude oil import price into Japan.
Exporting LNG is not something new for Indonesia as the country used to be the world’s top LNG exporter. In 2017, it was among the top five LNG exporters.
Indonesia exports LNG to Japan, Taiwan and China, as well as pipelining it from Sumatra and Natuna to Singapore and Malaysia.
